Archive for rent back
Feb
01
An Introduction To Sell And Rent Back
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According to Council of Mortgage Lenders (CML) there has been an increase of nearly 65% home repossessions in 2006 when compared to 2005. The number of repossessions will also increase next year due to rise in interest rates, which has put up pressure on people’s ability to repay their mortgages. A recent research has found that hundreds of thousands of people miss at least one mortgage payment every year. Other circumstances like Redundancy, job loss and illness can also leave you in this situation. If Mortgage Company insists on starting repossession proceedings, then the best solution would be to sell and rent back your house. Sell and rent back means to sell your house quickly, repay your debts and stay in the same house as a tenant. With most sell and rent back schemes; you will receive an offer on your property within days and the sale will complete in a month or less.
You may be planning to sell your house due to financial difficulties, relocation, emigration, repossession, and retirement, Divorce or Bereavement. If you want to sell your house but don’t want to leave your friends and family or your children’s leave the school then the best solution would be selling and rent back scheme. Specialist companies can clear all your mortgage debts by selling the house and renting it back to you. You can then stay in the same house as a tenant, as long as you wish to for a pre-arranged rent which will be based on local market rates. Specialist companies do give you an option to buy back your home at a fair, pre-agreed price, if your financial circumstances improve.
If you sell your house through a real estate agent you can encounter many problems. It may take nearly three to twelve months to sell your house. By that time all your debts may be called off. But if you sell your house through a specialist company, the chain will never break. If you sell your house through a real estate agent you have to pay some fees, plus the cost of legal work. If an estate agent takes more time to sell the house it may lead to more complications and increase your costs. But if you opt for sell and rent back service, it carries no fees and your work will be completed in a few weeks. It may be stressful for people to search a new house after selling their house. But if they opt for sell and rent back scheme they can stay in the same house as a tenant without leaving it. A cash purchase can be combined with an agreement to stay in the house as a tenant, by paying fair monthly rental.
Quick Property Sale
Jan
31
How Rent Back Can Solve Your Financial Problems
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Financial woes are rife these days, and rent back could be the solution. If you have experienced one of the following situations, then a sale rent back deal could help you get back onto firm financial ground.
Suppose you own a house with a partner and you have a couple of children. Everything is going smoothly and then the relationship ends. One of you needs to move out, leaving the other to raise the children and manage the mortgage. The trouble is that the person left behind doesn’t earn enough, but you both agree that you want to keep the family home so that the children are secure. Rent back offers a way to do this.
Another common scenario where a property rent back scheme might be useful is where a person becomes ill and is unable to earn. That person gets into mortgage arrears and has other financial difficulties. A home rent back scheme could solve those worries in one simple transaction and put money back in your pocket.
Sell rent back is also useful where you are in serious financial difficulties. If you are in debt, have defaulted on a secured loan and have several months or mortgage arrears, then a home rent back scheme may be the only way to stage a financial recovery. After all, selling your home is better than having it repossessed and sold by a lender who may get just enough to repay the debt, leaving you with nothing.
So, how can you profit from a house rent back scheme? It’s easy. First, find a company that offers a home rent back deal. This is as simple as looking in the classified ads, checking out the yellow pages or searching on the internet. Book a time for them to come round and look at your house. The rent back company will value your home, looking at the true market value of the property. If your property is in good condition, then you’ll get a better valuation than if it needs significant work.
The next part of the rent back process is the offer. The property rent back company will offer you up to 85 per cent of the assessed value of your home as a cash sum. You could wait around and hope to sell your home for the full value, but the property market is fickle and there’s no guarantee that you could get a sale on the open market before your home is repossessed. Rent back offers you that guarantee. You normally get an offer within a couple of days of valuation. If you accept, the deal can be done in less than a month.
Most people don’t like others knowing that their home has been repossessed. With rent back, you can avoid this stigma, by selling your home first and arranging to rent it back from the company at a fair market rental. Normally, you sign a tenancy agreement for six or 12 months, but longer agreements are often available. No one need ever know that you have sold your house, and with some companies you may be able to buy it back when you get straight.
Once you’ve got the money from the sale, you can repay mortgage arrears, loan arrears and other debt to get the lenders off your back. Then you have money in the bank while your landlord is responsible for maintaining the property. That’s another advantage of rent back.
Sell House Quick
Jan
28
‘Sell my house fast’ specialist, SecureASale has today highlighted the pitfalls to sellers that selling a property to rent it back throws up.
LONDON, UK- Property quick sale expert, SecureASale has today issued a report on the severe downsides to selling a property in order to rent it back again.
SecureASale company director and UK property market expert, Tim Jackson said, “If you are in financial difficulties and are thinking, “i need to sell my house fast”, then a quick sale to a cash homebuyer (like SecureASale) can often help to get you back on track.”
He continues, “Many companies also offer you the option to rent back your home from them once the sale is complete. While this is advantageous for the new owner (as they often take all the rent upfront and have a guaranteed tenant in the property), it is very rarely in the best interests of the seller, unless it is only for a very short period of time. If you can no longer afford to pay the mortgage on your home, then you probably won’t be able to afford the rent either as the new owner has to ensure that the costs on their own finances are more than covered.”
Jackson also went on to highlight the fact that most struggling homeowners who require equity release services are far better off downsizing to a smaller home and either purchasing or renting a cheaper property elsewhere.
SecureASale’s experts have also warned of the dangers of choosing an unreliable buyer. Jackson comments, “If you have found yourself in a position where you absolutely have to rent back your property from the new owner, please ensure that the homebuyer company you choose is a well-capitalised, cash-funded business and research them thoroughly before you take the plunge. This is important as many so-called quick sale, cash for homes experts fail to keep up payments on mortgages they secure on homes they have bought and the property ends up being repossessed by the bank. This leads to the tenant being forced out, often having paid a substantial ‘rent’ upfront to the new owner.
“Whilst an opportunity to release home equity is always tempting, especially when coupled with the idea of remaining in your current property, not every quick sale cash homebuyer has the funding to ensure your dream doesn’t turn into a real life nightmare.”
Whilst overall, rents are likely to continue to fall in line with plunging interest rates, incomes are also falling fast across the UK and job losses and company liquidations are rife. Ensuring you choose the right buy to rent back expert- so you don’t end up homeless and out of pocket- has never been so important. With a surplus of property available for rent thanks to the market crash, renters can, in many ways, take their pick.
For more advice on selling a property in order to rent back or any other property issues, please visit http://www.secureasale.co.uk or ring 020 7117 6001and ask to speak to one of SecureASale’s directors, who have over ten years of experience in the UK property market.
For all press enquiries please contact:
info@secureasale.co.uk
(020) 7117 6001
Head Office:
14b Pond Square
London
N6 6BA
Quick House Sale
Jan
28
Selling and Renting Back Your Home - Top 10 Tips
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Selling and Renting Back your home is an important decision that most people are forced to make under pressure. There are a few things you can do and questions you can ask to avoid making a mistake. These Top 10 Tips are a must read for anyone considering Selling and Renting Back their home.
Ask for (and make sure you get) a Guaranteed Rental Period that suits you. Make sure it is the intention of the Rent Back Company to keep you in your home as long as you want to stay there. If you want to stay long term/indefinitely make sure that there are no break clauses in the tenancy and that you always have the right to renew at the end of each period.
Make sure you have the Option to Buy Back your property in the future and understand how this will be calculated.
Can you Afford the Rent that is being offered? This is an important question to ask yourself when agreeing to a Sell and Rent Back offer. Remember if you don’t keep up with your monthly rent payments you may be asked to leave your home.
Ask and make sure you understand how future Rent Reviews and Increases will be calculated. When are these to take place and what factors will changes in rent be based on?
Remember to Get Everything In Writing. The offer (purchase price and rental), the length of tenancy (and whether this can be renewed), all details of the tenancy (including rent reviews), the buy back option and anything else you agree to should be provided in writing.
Don’t pay any Fees! You shouldn’t have to pay anything when you Sell and Rent Back your home. Be especially wary of companies asking for an upfront “survey fee”.
Choose a reputable Rent Back Company that you trust. Remember you will most likely have a long term relationship with this company, so it is important you like and trust them to do what they say.
Make sure you understand the Tenants Rights and Responsibilities as set out in the Tenancy Agreement. These are the things you will have to adhere to for the course of the tenancy.
Make sure you understand the Landlords Rights and Responsibilities as set out in the Tenancy Agreement. You need to be certain that the landlord will cover major works and repairs that are needed.
If in any doubt seek Independent Legal Advice. If you are unsure about any Sell and Rent Back agreements or documentation make sure you have it explained to you by an impartial third party before signing.
Quick House Sale
Jan
27
Your One-stop Heavy Tractor Buying, Selling, and Renting Site!
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At your farm, a heavy tractor is as essential to your daily operations as the sun and the rain. Plowing, disking, harrowing, tilling, planting, and pulling other agricultural heavy equipment would be impossible without the sturdy, dependable heavy tractor. Likewise, the heavy tractor can play a vital role in the construction, demolition, and mining business as dozers, sweeps, and ditch-diggers. So what happens when your heavy tractor stops working?
Repairs to a heavy tractor can easily cost thousands of dollars. A brand new heavy tractor costs $25,000, $50,000, or even $100,000. Heavy equipment is one of the most expensive investments for any farmer or construction company. Buy a few new pieces of machinery and you could easily put your business in debt for years to come—and who’s to say you won’t need another new heavy tractor before you’re able to pay off the first one?
And what if you need a heavy tractor for just one job? Perhaps you’re going to get your reliable heavy tractor repaired, but farming work can’t grind to a halt for the month or so your heavy tractor will be out of commission. Or maybe you have a construction, demolition, or mining job that requires the use of an extra heavy tractor or two and you don’t want to invest in a new heavy tractor only to have to sell it a month or so down the road.
Farmers and construction company owners who do have excess heavy tractors that they no longer use often can’t find buyers for their used heavy construction equipment in the immediate area. With the right buyer or renter, they could sell their used heavy tractors to make back a portion of the price they paid for them or they could lease their heavy tractors on a month-by-month basis, eventually making back more than the heavy tractors originally cost!
If you don’t know who will buy, sell, lease, or rent a heavy tractor in your area, the Internet is the best place to go. If you need a new heavy tractor or you have an extra heavy tractor that’s just taking up space on your farm or business lot, you need to find a reliable used construction equipment classifieds Web site at which you can sell, lease, rent, and buy used heavy equipment for no extra fees.
If you could find a buyer or a seller for a heavy tractor in your area, you wouldn’t have to spend as much as an additional 20% seller’s fee or a 2% buyer’s fee to sell or buy the used heavy equipment, right? Just because you don’t have all the connections to make the purchase or sale of a heavy tractor near you, why should you be penalized by reaching out to the farming and construction community on the World Wide Web?
That’s why a used machinery classifieds Web site that charges absolutely no fees to buyers, sellers, renters, and leasers of used machinery like heavy tractors, is the perfect solution for anyone who deals with heavy tractors. While many used heavy equipment Web sites do charge fees—which, when you’re buying a heavy tractor worth a tens of thousands, can easily reach $10,000 – some sites offer completely free basic memberships to anyone, no matter the price of the used heavy construction equipment that you’re buying, selling, renting, or leasing.
You can find a heavy tractor for sale for as little as $1500! There are also newer and bigger models of heavy tractors that range from $3500 to $50,000, depending on the size and condition of the tractor. Best of all, many heavy tractors are for sale at negotiable prices, so you might get an even better deal with a little salesmanship savvy! As a seller, a negotiable rate might allow you to sell the used heavy tractor for even more than you thought you could, earning you thousands more on the transaction!
If you want to rent or lease a heavy tractor, these sites also have a For Rent section, too. If you don’t see a heavy tractor for sale or for rent that meets your needs, place a free Want Ad and sellers will come to you with their offers. Sellers will find the Want Ads convenient as well, since buyers are already out there waiting to purchase their heavy tractors!
Frequent sellers of heavy tractors and other used heavy equipment can also take advantage of the free company store link option offered by these sites. Easy-to-access contact information and a browsable list of current used machinery up for sale make buyers more likely to make more than one purchase from a seller at a time.
The heavy tractor plays a central role in just about any farming, construction, demolition, or mining operation. Finding a free online used heavy equipment classifieds site can make all the difference in buying, selling, renting, or leasing a heavy tractor. Save thousands, make thousands, and enjoy a smooth, pain-free transaction!
For more resources about used skid steer or even about used heavy equipment please review this page http://www.machineryzone.com
Rent Back
Jan
26
Sell, Rent Back and Then Buy Back
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Home ownership is the most exciting prospect facing young couples and individuals today. Unfortunately, keeping your home is not as easy as it once was. The fluctuating interest rates, shaky economy and high cost of home ownership puts many people in financial jeopardy. If you’re having financial difficulties resulting in being unable to keep up with your mortgage payments, you may be facing foreclosure and repossession of your home. Fortunately, there are ways to stop repossession.
The most important way to try to stop repossession is to stay in contact with your lender. Explaining your financial situation to your lender can allow them to work with you in finding ways to help you including deferral of payments or refinancing for better loan terms. However, sometimes even with these options available, you’ll still find yourself facing repossession. Options you may want to consider to stop repossession is the sell and rent back or the sell and buy back option. Although this process may seem unfamiliar to many, it’s becoming a widely used practice with many advantages, the most obvious being able to stay in their home.
Sell and rent back involves selling your home to a cash buyer. When you’re facing repossession, you usually don’t often have much time from when the foreclosure process begins to when the actual repossession takes place. Keep in mind, however, that you can also stop repossession at any time by paying the arrears on your mortgage. Arrears are the amount that you are past due plus any late fees and fines. Once the repossession takes place, the bank will usually sell your home at public auction to the highest bidder. Many times the home is sold for less than you owe, leaving you still owing the bank money for many years. The best way to stop repossession is to sell your home quickly for cash. This enables you to pay off your mortgage and, often, have leftover cash to do with what you want.
Many sell and rent back companies are available today to help you. They purchase your home at less than the market value and rent it back to you. Although you will be losing equity by selling your home at less than market value, you’ll be able to stay in your home. With the sell and buy back option; you have the option to buy your home back when your financial situation improves. In most sell and buy back options; you can buy your home back below market value. Although this is the most common method used, each company may have a slightly different principle involved. For instance, one company may allow you to buy back your home at the same price they purchased it from you, while another may use a certain percentage such as 85% of market value. Whichever method they use, make sure you get this in writing.
It’s important to always have a contract in sell and rent back or sell and buy back options. Check out the companies you’re considering doing business with. Many unscrupulous companies will offer you full price on your home and a very low rent on your home. They’re not making any money this way so they’d have no reason to offer you this other than to rip you off. What they do is offer you a high price for your home, but any profit after paying off the mortgage will be kept for a few years while you’re renting from them. However, after a year or, possibly less, they evict you for some reason. Because you’re no longer their tenant, you’ve lost the rights to the profit from your home sale as well as the rights to buy back your home. Therefore, be sure of whom you enter into a sell and rent back or sell and buy back offer. Always, insist on a contract and insist they pay any legal fees. If they’re a trustworthy company, they’ll agree to this. One method of determining if you want to do business with this person or company is to ask yourself if this is someone you would want as your landlord for a few years.
If possible, you may want to check with other people that have been involved with this company or person in a sell and buy back or sell and rent back procedure. The internet is a great source of information. Use it to your advantage and do some checking.
There are advantages and disadvantages to sell and rent back or sell and buy back options, so you may want to speak with an attorney for legal advice. In some situations, these options may be your only way to stop repossession and preserve your credit rating. With a good credit rating, you may be able to get a mortgage in the future to buy back your home.
Beese Properties offers all of this to their customers and more. They offer advice on ways to stop repossession. They base their rents on the current rental market, so they do not overcharge their tenants. They work with their tenants to find a solution which meets their needs and offer the buy back solution to them once back on their financial feet. For more information, visit them online at http://www.beeseproperties.com.
Quick House Sale
Jan
25
How Do Quick Sale and Rent Back Companies Work?
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For those people requiring a quick sale or wanting to sell and rent back their properties there is now a whole plethora of specialist homebuying and rent back companies to chose from. The problem is that until regulation comes in (which will hopefully be shortly after the FSA have finished their investigation in the practices and best way to regulate the sector) then many unscrupulous companies will be allowed to exist.
How does the quick sale process work
The home buying company will buy your property directly from you. They are not an estate agency of middleman and they take full ownership of the property. They will typically offer you between 75-85% of the market value of the property in exchange for a quick (4 weeks or less) guaranteed sale. They will then rent out the property or sell it on.
Given the buying and selling costs are about 5% each then these companies may only make 5% profit on each property if bought at 85% and less if they can not sell it for months. This is why they need to buy at a discount.
How does rent back work
If you need to sell but want to stay in your property (i.e. because you need to pay off arrears or avoid repossession for example) then renting back your property could be the ideal solution.
This involves you selling the property to a specialist company and then them renting it back to you (most home buying specialists offer this service). The sale price will normally be between 75-85% of its market value just like in a quick sale situation.
The rent you would be charged would be similar to the market rent of that property. This rent normally works out less than previous mortgage payments and loan outgoings so that the person stays in the their property and reduces their outgoings.
When you rent back your property will most normally be on an assured shorthold tenancy agreement (AST). This is the standard contract between tenants and landlords. The maximum term of this contract can only be 12 months so it is imperative this has a clause added to this agreement giving you the right to renew this contract on it expiry. They should also specify how much the rent will increase each year (normally with inflation or set % amount).
A good company will insert a right to renew clause in the tenancy agreement. This gives the tenancy the right to renew their tenancy each year as long as conditions are met (i.e. the rent is paid, the property is kept in satisfactory condition).
Be careful which company you deal with
Anyone who says they can show you how to “Sell your property in 7
days or less for full market value” is LYING!! They just want to get into your front door and soon the offer of buying at full market value disappears. If you think about it, how could they make such an offer and make money as a business and why would they not just go to estate agents and buy up all the properties in the
windows? If it sounds to be good to be true it normally is!
Some unscrupulous companies have tarnished the image of sale and
rent back by evicting tenants when they did not want to leave. Please contact previous customers of the company and check online for reviews of them to make sure you are not dealing with such a company. Also check to see if they are a member of a recognised association which has a strict code of conduct such as the National Association of Sale and Rent Back (NASRB).
Why would a rent back company throw me out?
The vast majority of rent back companies love having previous owners stay in the properties for the long term as they do not have to advertise for new tenants each year and have periods when their property is empty.
In addition, sale and rent back tenants treat the property with great care as it still s feels like their house and not rented accomodation. They tend to respect properties better than normal tenants and most companies do not want to lose them.
Also, a good sale and rent back company will give some assurances about future increases in rent. For example, they may stipulate that rents will only increase with inflation each year or at the same rate as market rents. This should be in the contract. If not, there is a danger they could increase the rents massively each year to the point where it is effectively forcing their tenants out.
Option to Buy Back
Some companies will also give you the option to buy back your property at a fixed price in the future. This is agreed before you sell and this contract is registered at the land registry. This gives you a legal right, but not obligation, to buy your property at a preagreed price over a set timeframe.
Regulation of sale and rent back
The Office of Fair Trading are conducting a study that will determine whether existing consumer laws can keep homeowners adequately informed and protected, and could recommend that sale and rent back is fully regulated. Any further protection will be great for reputable companies and rent back customers.
Sell House Quick
Jan
23
Should You Rent Or Buy Your First Property?
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When you first leave home, you are faced with the daunting decision of whether to rent or buy your first property. Both have their merits, but which one makes the most financial sense?
A major factor behind this decision is the current state of the property market. At the moment we are in a major slowdown here in the UK so if you buy now you run the risk of your mortgage being higher than the value of the property, ie negative equity, if you subsequently sell it in the next few years.
This is a position you definitely do not want to find yourself in, but is nevertheless potentially a possibility if you buy now, so renting in this instance could be worth considering.
Another factor worth taking into consideration is your current and future employment because if you think you may be relocated in a few years time, for example, then negative equity could be a reality if you buy now because property prices may be slightly lower than they are now when you come to sell.
Renting may also be the better option when rental prices are generally a lot lower than mortgage costs for properties in your local area.
In general though you have to remember that in the long term property prices trend upwards, so if you are renting a property for any length of time you are missing out on any potential capital gains in the meantime.
Although the property market is flat at the moment, house prices will eventually start to rise again and you don’t really want to still be renting at this point.
My own opinion is that in general you should try and get on the first rung of the property ladder as soon as possible, because if you look at the bigger picture, house prices generally double every 7-10 years, so the earlier you can buy, the more capital gains you can realise, and the quicker you can secure your financial future.
As a first-time buyer, you are in a strong position because there is no chain involved, which is favourable to sellers and means you can negotiate a better price, particularly in the current market.
Furthermore by buying a property in need of redecoration or renovation, you can not only buy a more affordable property, but you can move up the property ladder quicker by doing it up and adding value, and you can also protect yourself to some extent from falling property prices in the short term.
So overall I personally think that as a first time buyer you should always look to buy your first property if at all possible. The only exception would be if you are planning to move within a year or two, in which case renting would potentially make more financial sense in the current market.
Sell House Quick
Jan
19
Sell and Rent Back
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Sell and rent back is a very interesting theme which various companies are trying nowadays. In this type of work a company takes a home on discounted price from the borrower which will rent back to them at the market price. The advantage of sell and rent back is in the term of arrears. The deal can be done quietly without any interference of the neighbours and the surrounding houses. The only major drawback comes in the form of unregulated firms. The house is taken on less than the market value which means at the discounted price.
The cash can be used by the homeowners to settle the mortgages if there are any. Outstanding debts can also be clarified and they can be paid too. Many companies also offer the scheme to buy back the house at a later time in future at the market value of that day. The legal matters are set within very few days because of the earnestness of the company. Most of the sell and rent back vendors claim that the borrowers get 70-85 % of the money which means a little loss, whatsoever. But there are also some incentives behind these schemes too.
Discretion is also offered by the firms offering sell and rent back schemes. There neighbours need to tell the neighbours and the discretion is fully used at the general basis. But there are also some major drawbacks of sell and rent back schemes. Homeowners have to sell their home at a discounted price which means a certain bit of loss instantly. The quick sales company deals only with the people who need to pay their debts immediately without any hassle. These companies are always there to look out for people who want to sell their house in a hurry which means an instant profit for these companies.
The only possible solution is not to fall into the snares of these companies but if a person needs money immediately then there is no choice. The internet has allowed these sell and rent back companies to grow very easily. These companies try to find the people who are in need of money and at the end they carry out the whole deal at their cost. But the person who wants to go for the sell and rent back schemes should always go for some other easily available options.
Most of the companies are part of wider groups and they are the big firms who carry out big businesses. These business minded people tries to get hold of the lower middle class and they shows the money power to lure them instantly. The vendors are always there to help these companies because they get their own commission by bringing the clients. At the end it does not seem feasible that an individual should go for sell and rent back schemes because of the loss incurred in it. The loss incurred is much greater in the sell and rent back schemes than any other scheme.
Passive Income
Jan
18
Should I Sell or Rent My Home?
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Some home owners have the choice to sell or rent their homes after moving elsewhere, which can be a difficult decision to make. Here are some details on the pros and cons of either option, along with factors that should be considered when making the decision to sell or rent…
If you choose to rent the home, you may be able to generate additional income, and will retain the option to eventually move back. Chances are you bought the home for more than one reason in the first place, so you may have good reasons to hold onto the home. However, there are many costs associated with renting a home (appliances, hot water, property taxes, etc.), and the owner remains responsible for its maintenance. There is also the potential for problems with non-paying or careless tenants. Being mindful of the tenants you let come into your home is an important factor. Be sure to check out as much history and background on the potential tenant as you can, to try to save you from future troubles.
On the other hand, if you successfully sell the home you won’t have to worry about making mortgage and property tax payments, finding trustworthy tenants, or maintaining the building. Generally, it will be necessary to pay a realtor’s sales commission and a portion of the closing costs, as well as spending time preparing the house for showings to potential buyers. Putting your home on the market is a big decision. You must be ready to move if you get an immediate offer. With today’s economy homes are taking longer to sell, and preparing your home before you put it on the market is the key. Making sure your home is in the best condition possible. Having things fixed, and freshened before potential buyers see it, will help it sell. The first impression may determine whether the buyer will make an offer on your house, or go on to another house they like.
One last option is to rent the home while trying to sell it. This option usually decreases both its rental and sale values. Trying to sell it while renting can be hard, and risky. You cannot guarantee that the renter will maintain the property in the same manner you, the owner would. Basically, the best decision depends upon the real estate market in your area, your personal financial situation, the home’s attractiveness to renters or buyers, and your home maintenance abilities.
Repossession
